Project Management must be Backed by Quality Regulations

26 january 2016

The Analytical Center held a Round Table on infrastructure projects with state participation that looked at changes in regulations as a way to legitimate the use of project management. During the Round Table experts put forward proposals for what amendments could be made to existing laws to allow the tools and methods of project management to be used legitimately in the implementation of major socially-significant infrastructure projects that the state has a stake in.

“Budget constraints mean that the efficiency of major infrastructure projects must be maximized,” said Mikhail Pryadilnikov, the Deputy Head of the Analytical Center. “Relevant regulations must be changed, including those that regulate the use of budget funds.”

Pavel Shestopalov, the Assistant with the Department for Economics and Finance of the Russian Government believes that while the current regulations do not explicitly ban project management they do not allow its use either, so proposals should be put forward for how to create a kind of legal framework to support the use of project management. The system approach to managing complex projects helps minimize the risks associated with major projects - need to re-launch the project, failure to deliver on time, failure to achieve goals, budget overrun, etc.

“Most investment projects, at least in construction, do not have a qualified long term end system consumer, i.e. a legal entity or an individual interested in high-quality and efficient project implementation. Most projects eventually fall apart because of that. We need to have such qualified consumers from the get-go,” said Vladimir Malakhov, the Deputy Director for Engineering of the Industry Center for Capital Construction of the State Corporation Rosatom.  He also believes that all the terms must be properly defined and some definitions that are no longer relevant today must be changed.

Elena Kolosova, the Development Director at K4 LLC and a representative of the National Chamber of Engineers, believes that there must be a clear understanding already at the stage of feasibility studies and development of project documentation what the project is going to be like and how it is going to be implemented and used afterwards, because any inefficiency of a project ‘on paper’ makes its implementation even more inefficient. Ms. Kolosova also believes that a procedure should be established for commissioning facilities only after it is operated accident free for a pre-determined period of time.

It was also noted during the discussion that the introduction of project management requires development of mechanisms for training and motivating personnel and that currently laws are being developed to regulate technological and pricing audits.

Program

List of participants